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The US Dollar (USD) extended its advance for yet another day on Thursday, reaching new two-month peaks as investors continued to assess the latest FOMC event and higher US inflation, all ahead of the critical release of the Nonfarm Payrolls on Friday.

Here's what to watch on Friday, August 1:

The US Dollar Index (DXY) finally reclaimed the psychological 100.00 barrier and beyond, up for the sixth consecutive day and hitting new two-month highs. The Nonfarm Payrolls will take centre stage at the end of the week, seconded by the Unemployment Rate, the ISM Manufacturing PMI, Construction Spending, the final S&P Global Manufacturing PMI, and the final U-Mich Consumer Sentiment.

EUR/USD held on to the 1.1400 region amid marginal gains, all within a broad-based bearish context. The flash Inflation Rate in the euro bloc will be the salient event on the domestic calendar, alongside the final prints of the HCOB Manufacturing PMI in both Germany and the euro area.

GBP/USD broke below the 1.3200 support to hit new two-month lows, always in response to the persistent upside impulse of the Greenback. The Nationwide House Price Index and the final S&P Global Manufacturing PMI are due across the Channel.

USD/JPY added to Wednesday’s uptick and surpassed the key 150.00 hurdle, climbing to new four-month peaks. Next in Japan will be the Unemployment Rate and the final S&P Global Manufacturing PMI.

AUD/USD could not sustain the initial bullish momentum, deflating to the area of recent lows in the 0.6430-.6420 band. Producer Prices are due in Australia prior to the final S&P Global Manufacturing PMI.

Crude oil prices receded from recent peaks north of the key $70.00 mark per barrel of WTI in response to trade effervescence, the stronger US Dollar, and the build-up in US stockpiles.

Prices of Gold regained some balance and clocked acceptable gains around the $3,300 zone per troy ounce, partially fading the recent deep pullback. Silver prices maintained their bearish stance and dropped to three-week lows near the $36.00 area per ounce.

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